The Beginning of a Bitcoin Bull Run? - Visual Capitalist
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The Beginning of a Bitcoin Bull Run?



bitcoin bull run

The Beginning of a Bitcoin Bull Run?

After 15 months of losses and stagnation, Bitcoin has made a miraculous recovery — rising more than 150% from its lowest point in December 2018.

In its heyday, Bitcoin had surpassed $10,000 in early December 2017, before briefly crossing the $20,000 mark for a single day on December 17th. A year later, the digital currency had fallen back to Earth, dropping below $3,200.

Now that the dust of that wild speculative frenzy has settled, Bitcoin is back on the upswing. What could be causing this most recent surge in growth?

We look at four possible explanations for the Bitcoin bull run, as originally outlined by Aaron Hankin at MarketWatch:

Technical Milestones

Bitcoin has seen several technical milestones this year, such as surpassing the psychological barrier of $5,000 in early 2019, breaking the 200-day moving average, and scoring the golden cross (when the 50-day moving average crosses above the 200-day moving average).

Widespread Adoption

Bitcoin is experiencing a steady increase in adoption across several markets. The term Bitcoin has become a household name — even if people don’t understand what it does, they know what it is.

Companies such as Starbucks, Microsoft, and Amazon, and Nordstrom are looking for ways to integrate cryptocurrencies into daily transactions for faster payment clearance, innovative rewards programs, and efficient customer service interactions.

bitcoin merchants

Shifting Sentiments

Bitcoin has possibly seen a shift in public perception. There have been fewer negative articles about Bitcoin and cryptocurrencies, and the news stories that are negative no longer have as big of an impact as they once did.

When Binance announced hackers stole $40 million in bitcoin and when accusations of an $850-million cover-up were leveled against Bitfinex and Tether, the Bitcoin bull run barely flinched and continued to climb.

Wavering Gold Investment

Investor confidence in gold has been more stagnant in recent times. To capitalize on this, Grayscale Investments (of Digital Currency Group) posted a campaign in May 2019 promoting Bitcoin as an ideal alternative to gold because it is borderless, secure, and more efficient for storing value.

Despite the World Gold Council’s response denying those claims, the Grayscale Bitcoin Trust saw OTC Markets Group’s highest trading volumes five days later.

Where to from here?

After a long skid, it appears Bitcoin is showing signs of life again. Bitcoin’s price can be highly volatile, so it remains to be seen whether this is the beginning of a bull run, or whether this is just another bump in the roller coaster ride.

Editor’s note: The price of Bitcoin has fallen to $7,100 at time of publishing and will likely continue to experience extreme volatility. However, even at a price of $7,100, this is still a 120% increase from lows in Dec 2018. As well, an earlier version of this graphic had incorrect dates on the timeline. That has now been corrected.

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The Cost of Mining Bitcoin in 198 Different Countries

Mining bitcoin is costly. But the exact price fluctuates, depending on the location and the cost of electricity in the area.



Cost of Mining Bitcoin in 198 Different Countries

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It takes an estimated 1,449 kilowatt hours (kWh) of energy to mine a single bitcoin. That’s the same amount of energy an average U.S. household consumes in approximately 13 years.

Given the high amount of energy needed to mine bitcoin, it can be a costly venture to get into. But exact prices fluctuate, depending on the location and the cost of electricity in the area.

Where are the cheapest and most expensive places to mine this popular cryptocurrency? This graphic by 911 Metallurgist provides a snapshot of the estimated cost of mining bitcoin around the world, using pricing and relative costs from March 23, 2022.

How Does Bitcoin Mining Work?

Before diving in, it’s worth briefly explaining the basics of bitcoin mining, and why it requires so much energy.

When someone mines for bitcoin, what they’re really doing is adding and verifying a new transaction record to the blockchain—the decentralized bank ledger where bitcoin is traded and distributed.

To create this new record, crypto miners need to crack a complex equation that’s been generated by the blockchain system.

Potentially tens of thousands of miners are racing to crack the same code at any given time. Only the first person to solve the equation gets rewarded (unless you’re part of a mining pool, which is essentially a group of miners who agree to combine efforts to increase their chances of solving the equation).

The faster your computing power is, the better your chances are of winning, so solving the equation first requires powerful equipment that takes up a lot of energy.

The Costs and Profits of Mining Bitcoin in 198 Countries

Across the 198 countries included in the dataset, the average cost to mine bitcoin sat at $35,404.03, more than bitcoin’s value of $20,863.69 on July 15, 2022. Though it’s important to note that fluctuating energy prices, and more or less miners on the bitcoin network, constantly change the necessary energy and final cost.

Here’s a breakdown of what the cost to mine one bitcoin in each country was in March 23, 2022, along with the potential profit after accounting for mining costs:

#CountryCost to mine 1 bitcoinProfit (July 15, 2022)
1🇰🇼 Kuwait$1,393.95$18,362.58
2🇩🇿 Algeria$4,181.86$15,574.67
3🇸🇩 Sudan$4,779.27$14,977.26
4🇾🇪 Yemen$7,161.77$12,594.76
5🇪🇹 Ethiopia$7,168.91$12,587.62
6🇰🇬 Kyrgyzstan$7,168.91$12,587.62
7🇦🇴 Angola$7,368.04$12,388.49
8🇶🇦 Qatar$7,368.04$12,388.49
9🇰🇵 North Korea$7,744.32$12,012.21
10🇰🇿 Kazakhstan$8,762.00$10,994.53
11🇿🇲 Zambia$9,160.27$10,596.26
12🇦🇿 Azerbaijan$9,558.54$10,197.99
13🇧🇳 Brunei$9,956.81$9,799.72
14🇮🇷 Iran$10,355.09$9,401.44
15🇺🇿 Uzbekistan$10,355.09$9,401.44
16🇽🇰 Kosovo$10,560.17$9,196.36
17🇸🇬 Singapore$10,952.50$8,804.03
18🇲🇳 Mongolia$11,151.63$8,604.90
19🇧🇹 Bhutan$11,749.04$8,007.49
20🇧🇭 Bahrain$11,948.18$7,808.35
21🇴🇲 Oman$11,948.18$7,808.35
22🇹🇯 Tajikistan$12,545.59$7,210.94
23🇺🇦 Ukraine$12,744.72$7,011.81
24🇬🇪 Georgia$13,143.00$6,613.53
25🇦🇬 Paraguay$13,143.00$6,613.53
26🇹🇹 Trinidad and Tobago$13,143.00$6,613.53
27🇸🇷 Suriname$14,337.81$5,418.72
28🇸🇦 Saudi Arabia$14,736.09$5,020.44
29🇦🇲 Armenia$15,333.50$4,423.03
30🇹🇳 Tunisia$15,333.50$4,423.03
31🇸🇾 Syria$15,532.63$4,223.90
32🇨🇬 Congo (Republic Of The)$16,130.04$3,626.49
33🇲🇲 Myanmar$16,130.04$3,626.49
34🇷🇺 Russia$16,130.04$3,626.49
35🇮🇶 Iraq$16,926.59$2,829.94
36🇲🇩 Moldova$16,926.59$2,829.94
37🇹🇷 Turkey$17,723.13$2,033.40
38🇷🇴 Romania$18,320.54$1,435.99
39🇦🇱 Albania$18,718.81$1,037.72
40🇧🇩 Bangladesh$18,718.81$1,037.72
41🇱🇮 Liechtenstein$18,917.95$838.58
42🇱🇹 Lithuania$18,917.95$838.58
43🇲🇿 Mozambique$19,117.08$639.45
44🇪🇬 Egypt$19,316.22$440.31
45🇨🇩 Congo (Democratic Republic Of The)$19,913.63-$157.10
46🇳🇴 Norway$20,112.77-$356.24
47🇦🇹 Austria$20,311.90-$555.37
48🇨🇱 Chile$20,311.90-$555.37
49🇪🇪 Estonia$20,511.04-$754.51
50🇸🇪 Sweden$20,710.18-$953.65
51🇨🇫 Central African Republic$20,909.31-$1,152.78
52🇺🇸 United States$21,088.53-$1,332.00
53🇧🇬 Bulgaria$21,307.58-$1,551.05
54🇮🇩 Indonesia$21,307.58-$1,551.05
55🇷🇸 Serbia$21,307.58-$1,551.05
56🇦🇷 Argentina$21,506.72-$1,750.19
57🇦🇪 United Arab Emirates$21,705.86-$1,949.33
58🇳🇬 Nigeria$22,303.27-$2,546.74
59🇲🇬 Madagascar$22,502.40-$2,745.87
60🇱🇻 Latvia$22,701.54-$2,945.01
61🇰🇷 South Korea$22,701.54-$2,945.01
62🇧🇦 Bosnia and Herzegovina$23,099.81-$3,343.28
63🇹🇼 Taiwan$23,298.95-$3,542.42
64🇮🇱 Israel$23,498.08-$3,741.55
65🇪🇨 Ecuador$23,697.22-$3,940.69
66🇲🇾 Malaysia$23,896.36-$4,139.83
67🇳🇵 Nepal$23,896.36-$4,139.83
68🇳🇿 New Zealand$23,896.36-$4,139.83
69🇱🇺 Luxembourg$24,095.49-$4,338.96
70🇮🇸 Iceland$24,294.63-$4,538.10
71🇨🇦 Canada$24,493.76-$4,737.23
72🇲🇦 Morocco$24,692.90-$4,936.37
73🇿🇼 Zimbabwe$24,692.90-$4,936.37
74🇻🇳 Vietnam$24,892.04-$5,135.51
75🇨🇮 Côte D’Ivoire (Ivory Coast)$25,091.17-$5,334.64
76🇱🇾 Libya$25,091.17-$5,334.64
77🇹🇿 Tanzania$25,091.17-$5,334.64
78🇦🇩 Andorra$25,276.27-$5,519.74
79🇨🇳 China$25,489.45-$5,732.92
80🇱🇧 Lebanon$25,887.72-$6,131.19
81🇱🇦 Laos$26,285.99-$6,529.46
82🇫🇮 Finland$26,485.13-$6,728.60
83🇫🇷 France$27,082.54-$7,326.01
84🇨🇭 Switzerland$27,082.54-$7,326.01
85🇵🇱 Poland$27,281.67-$7,525.14
86🇷🇼 Rwanda$27,281.67-$7,525.14
87🇹🇭 Thailand$27,281.67-$7,525.14
88🇨🇿 Czech Republic$27,480.81-$7,724.28
89🇱🇸 Lesotho$27,679.95-$7,923.42
90🇲🇪 Montenegro$28,078.22-$8,321.69
91🇲🇱 Mali$28,277.35-$8,520.82
92🇨🇷 Costa Rica$28,675.63-$8,919.10
93🇳🇱 Netherlands$28,675.63-$8,919.10
94🇧🇾 Belarus$29,273.04-$9,516.51
95🇳🇦 Namibia$30,069.58-$10,313.05
96🇲🇰 Macedonia, North$30,866.13-$11,109.60
97🇸🇲 San Marino$30,866.13-$11,109.60
98🇸🇰 Slovakia$31,065.26-$11,308.73
99🇿🇦 South Africa$32,060.94-$12,304.41
100🇧🇼 Botswana$32,459.22-$12,702.69
101🇸🇿 Swaziland$32,857.49-$13,100.96
102🇧🇪 Belgium$33,255.76-$13,499.23
103🇺🇾 Uruguay$33,255.76-$13,499.23
104🇧🇷 Brazil$33,454.90-$13,698.37
105🇭🇷 Croatia$33,454.90-$13,698.37
106🇮🇹 Italy$33,454.90-$13,698.37
107🇺🇬 Uganda$33,654.03-$13,897.50
108🇨🇲 Cameroon$33,853.17-$14,096.64
109🇲🇽 Mexico$33,853.17-$14,096.64
110🇲🇼 Malawi$34,251.44-$14,494.91
111🇧🇮 Burundi$34,450.58-$14,694.05
112🇱🇰 Sri Lanka$34,450.58-$14,694.05
113🇬🇶 Equatorial Guinea$34,649.72-$14,893.19
114🇧🇴 Bolivia$34,848.85-$15,092.32
115🇲🇷 Mauritania$35,047.99-$15,291.46
116🇵🇸 Palestine$35,047.99-$15,291.46
117🇹🇬 Togo$35,047.99-$15,291.46
118🇦🇫 Afghanistan$35,844.53-$16,088.00
119🇭🇺 Hungary$35,844.53-$16,088.00
120🇸🇱 Sierra Leone$35,844.53-$16,088.00
121🇲🇨 Monaco$35,922.73-$16,166.20
122🇵🇭 Philippines$36,043.67-$16,287.14
123🇰🇭 Cambodia$36,242.81-$16,486.28
124🇸🇳 Senegal$36,242.81-$16,486.28
125🇸🇹 São Tomé and Príncipe$36,441.94-$16,685.41
126🇮🇪 Ireland (Republic Of)$37,835.90-$18,079.37
127🇲🇹 Malta$37,835.90-$18,079.37
128🇨🇾 Cyprus$38,035.03-$18,278.50
129🇬🇦 Gabon$38,035.03-$18,278.50
130🇸🇻 El Salvador$38,831.58-$19,075.05
131🇵🇪 Peru$38,831.58-$19,075.05
132🇨🇴 Colombia$39,628.12-$19,871.59
133🇩🇴 Dominican Republic$40,026.40-$20,269.87
134🇬🇹 Guatemala$40,026.40-$20,269.87
135🇬🇲 The Gambia$40,225.53-$20,469.00
136🇬🇳 Guinea$40,424.67-$20,668.14
137🇮🇳 India$40,424.67-$20,668.14
138🇦🇺 Australia$40,623.81-$20,867.28
139🇬🇷 Greece$40,623.81-$20,867.28
140🇲🇺 Mauritius$40,822.94-$21,066.41
141🇧🇯 Benin$41,221.21-$21,464.68
142🇭🇳 Honduras$41,420.35-$21,663.82
143🇭🇹 Haiti$42,017.76-$22,261.23
144🇹🇩 Chad$42,216.90-$22,460.37
145🇳🇪 Niger$42,416.03-$22,659.50
146🇰🇪 Kenya$43,212.58-$23,456.05
147🇫🇯 Fiji$43,411.71-$23,655.18
148🇪🇷 Eritrea$43,610.85-$23,854.32
149🇸🇸 South Sudan$43,809.99-$24,053.46
150🇵🇰 Pakistan$44,208.26-$24,451.73
151🇵🇹 Portugal$44,208.26-$24,451.73
152🇧🇿 Belize$45,004.80-$25,248.27
153🇳🇷 Nauru$45,378.54-$25,622.01
154🇹🇱 Timor-Leste$46,597.89-$26,841.36
155🇬🇭 Ghana$46,996.17-$27,239.64
156🇯🇵 Japan$47,195.30-$27,438.77
157🇧🇫 Burkina Faso$47,394.44-$27,637.91
158🇩🇰 Denmark$48,190.98-$28,434.45
159🇯🇴 Jordan$48,987.53-$29,231.00
160🏴󠁧󠁢󠁥󠁮󠁧󠁿 England$49,301.82-$29,545.29
161🏴󠁧󠁢󠁳󠁣󠁴󠁿 Scotland$50,090.64-$30,334.11
162🇵🇦 Panama$50,580.62-$30,824.09
163🇩🇪 Germany$50,978.89-$31,222.36
164🇬🇧 Ireland (Northern)$51,536.83-$31,780.30
165🇪🇸 Spain$51,775.44-$32,018.91
166🇩🇯 Djibouti$52,173.71-$32,417.18
167🏴󠁧󠁢󠁷󠁬󠁳󠁿 Wales$52,194.19-$32,437.66
168🇨🇻 Cape Verde$52,372.85-$32,616.32
169🇯🇲 Jamaica$52,571.98-$32,815.45
170🇧🇧 Barbados$52,970.26-$33,213.73
171🇸🇮 Slovenia$52,970.26-$33,213.73
172🇹🇻 Tuvalu$53,887.02-$34,130.49
173🇬🇼 Guinea-Bissau$54,364.21-$34,607.68
174🇰🇲 Comoros$55,957.30-$36,200.77
175🇧🇸 Bahamas$56,753.85-$36,997.32
176🇵🇬 Papua New Guinea$57,550.39-$37,793.86
177🇰🇳 Saint Kitts and Nevis$60,935.71-$41,179.18
178🇬🇩 Grenada$61,533.12-$41,776.59
179🇵🇼 Palau$63,922.75-$44,166.22
180🇱🇨 Saint Lucia$63,922.75-$44,166.22
181🇸🇨 Seychelles$63,922.75-$44,166.22
182🇬🇾 Guyana$65,316.71-$45,560.18
183🇳🇮 Nicaragua$66,511.52-$46,754.99
184🇻🇨 Saint Vincent and Grenadines$68,901.16-$49,144.63
185🇹🇴 Tonga$72,087.34-$52,330.81
186🇩🇲 Dominica$73,282.16-$53,525.63
187​🇻🇺​ Vanuatu$76,070.07-$56,313.54
188🇼🇸​ Samoa$76,667.48-$56,910.95
189​🇨🇺​ Cuba$76,946.27-$57,189.74
190🇱🇷 Liberia$77,663.16-$57,906.63
191​🇲🇻​ Maldives$78,459.70-$58,703.17
192🇲🇭 Marshall Islands$80,849.34-$61,092.81
193🇸🇴 Somalia$82,044.16-$62,287.63
194🇰🇮 Kiribati$82,243.29-$62,486.76
195🇫🇲 Micronesia, Federated States Of$82,442.43-$62,685.90
196🇦🇬 Antigua and Barbuda$89,412.20-$69,655.67
197🇸🇧 Solomon Islands$142,581.59-$122,825.06
198🇻🇪 Venezuela$246,530.74-$226,774.21

Venezuela ranks as the number one most expensive country to mine bitcoin. It costs a whooping $246,530.74 to mine a single bitcoin in the South American country, meaning the process is far from profitable. Energy costs are so expensive in the country that miners would be out $225,667.05 for just one bitcoin.

On the opposite end of the spectrum, the cheapest place to mine bitcoin is in Kuwait. It costs $1,393.95 to mine a single bitcoin in Kuwait, meaning miners could gain $19,469.74 in profits.

The Middle Eastern country has some of the cheapest electricity in the world, with one kWh costing an average of just 3 cents. For context, the average cost of one kWh in North America is 21 cents.

The Race is On

Despite the steep costs of bitcoin mining, many people believe it’s worth the upfront investment.

One thing that makes bitcoin particularly appealing is its finite supply—there are only 21 million coins available for mining, and as of this article’s publication, more than 19 million bitcoin have already been mined.

While the price of bitcoin (BTC) is notorious for its volatility, its value has still grown significantly over the last decade. And if cryptocurrencies become mainstream as many people believe they will, this could boost the price of bitcoin even further.

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Visualizing the Power Consumption of Bitcoin Mining

Bitcoin mining requires significant amounts of energy, but what does this consumption look like when compared to countries and companies?



Visualizing the Power Consumption of Bitcoin Mining

Cryptocurrencies have been some of the most talked-about assets in recent months, with bitcoin and ether prices reaching record highs. These gains were driven by a flurry of announcements, including increased adoption by businesses and institutions.

Lesser known, however, is just how much electricity is required to power the Bitcoin network. To put this into perspective, we’ve used data from the University of Cambridge’s Bitcoin Electricity Consumption Index (CBECI) to compare Bitcoin’s power consumption with a variety of countries and companies.

Why Does Bitcoin Mining Require So Much Power?

When people mine bitcoins, what they’re really doing is updating the ledger of Bitcoin transactions, also known as the blockchain. This requires them to solve numerical puzzles which have a 64-digit hexadecimal solution known as a hash.

Miners may be rewarded with bitcoins, but only if they arrive at the solution before others. It is for this reason that Bitcoin mining facilities—warehouses filled with computers—have been popping up around the world.

These facilities enable miners to scale up their hashrate, also known as the number of hashes produced each second. A higher hashrate requires greater amounts of electricity, and in some cases can even overload local infrastructure.

Putting Bitcoin’s Power Consumption Into Perspective

On March 18, 2021, the annual power consumption of the Bitcoin network was estimated to be 129 terawatt-hours (TWh). Here’s how this number compares to a selection of countries, companies, and more.

NamePopulation Annual Electricity Consumption (TWh)
United States330.2M3,989
All of the world’s data centers-205
State of New York19.3M161
Bitcoin network -129 
Walt Disney World Resort (Florida)-1

Note: A terawatt hour (TWh) is a measure of electricity that represents 1 trillion watts sustained for one hour.
Source: Cambridge Centre for Alternative Finance, Science Mag, New York ISO, Forbes, Facebook, Reedy Creek Improvement District, Worldometer

If Bitcoin were a country, it would rank 29th out of a theoretical 196, narrowly exceeding Norway’s consumption of 124 TWh. When compared to larger countries like the U.S. (3,989 TWh) and China (6,543 TWh), the cryptocurrency’s energy consumption is relatively light.

For further comparison, the Bitcoin network consumes 1,708% more electricity than Google, but 39% less than all of the world’s data centers—together, these represent over 2 trillion gigabytes of storage.

Where Does This Energy Come From?

In a 2020 report by the University of Cambridge, researchers found that 76% of cryptominers rely on some degree of renewable energy to power their operations. There’s still room for improvement, though, as renewables account for just 39% of cryptomining’s total energy consumption.

Here’s how the share of cryptominers that use each energy type vary across four global regions.

Energy SourceAsia-PacificEuropeLatin America
and the Caribbean
North America
Natural gas38%33%17%44%

Source: University of Cambridge
Editor’s note: Numbers in each column are not meant to add to 100%

Hydroelectric energy is the most common source globally, and it gets used by at least 60% of cryptominers across all four regions. Other types of clean energy such as wind and solar appear to be less popular.

Coal energy plays a significant role in the Asia-Pacific region, and was the only source to match hydroelectricity in terms of usage. This can be largely attributed to China, which is currently the world’s largest consumer of coal.

Researchers from the University of Cambridge noted that they weren’t surprised by these findings, as the Chinese government’s strategy to ensure energy self-sufficiency has led to an oversupply of both hydroelectric and coal power plants.

Towards a Greener Crypto Future

As cryptocurrencies move further into the mainstream, it’s likely that governments and other regulators will turn their attention to the industry’s carbon footprint. This isn’t necessarily a bad thing, however.

Mike Colyer, CEO of Foundry, a blockchain financing provider, believes that cryptomining can support the global transition to renewable energy. More specifically, he believes that clustering cryptomining facilities near renewable energy projects can mitigate a common issue: an oversupply of electricity.

“It allows for a faster payback on solar projects or wind projects… because they would [otherwise] produce too much energy for the grid in that area”
– Mike Colyer, CEO, Foundry

This type of thinking appears to be taking hold in China as well. In April 2020, Ya’an, a city located in China’s Sichuan province, issued a public guidance encouraging blockchain firms to take advantage of its excess hydroelectricity.

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